Motorcycle insurance, ANCMA: "It is essential to postpone the relevant provisions contained in the competition law"

In a note, Confindustria ANCMA (National Association of Cycle and Motorcycle Accessories) expresses its opinion regarding the forthcoming entry into force of the extension of the CARD mechanism, to which Italian insurance companies now participate, including those operating with registered office in other European countries. “While waiting for the opening of a table for the reform of the CARD, i.e. the Agreement between Insurers for Direct Compensation, it is essential to immediately postpone the relevant provisions contained in the competition law. As widely expected, the effects of the rule, effective from 1 January 2023, have already led to increases of over 30% on insurance premium estimates. And, according to data provided by the facile.it portal, in some areas of Italy the increases can exceed 100%. All this, in light of the inflationary situation, brings with it a high risk of tax avoidance and a potential factor slowing down the two-wheeler market which is going through a very positive phase".

The mechanism

Over the years, it has generated positive effects on insurance premiums and, above all, on compensation times in the auto sector. However, as highlighted by a study commissioned by ANCMA to the LUISS University and the performance of the insurance market, the agreement CARD generates distorting effects on two-wheeler policies, as the rigidity of the lump sum reimbursement mechanism is not adapted to motorcycle accidents, which are also characterized by a high probability of personal injury.
The CARD direct compensation, which dates back to 2007, provides that the driver who suffers an accident is not compensated by the insurance of the person responsible for the accident, but by his own; this will subsequently receive a lump sum reimbursement from the insurance of the driver who caused the damage.

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